Van Cleef & Arpels price hike sparks Chinese buyer frenzy

As the likes of Gucci continue to struggle in China, fellow Richemont stablemate Van Cleef & Arpels looks set for a successful 2024, fueled by strong demand for its iconic Alhambra bracelet. But will this demand prove immune to a price hike in mainland China?

On May 31, Van Cleef & Arpels increased the prices of select items – such as the brand’s ultra-popular Vintage Alhambra bracelet – by around 11% in China, confirming earlier rumors in the Chinese-language press. The 18K gold and carnelian Alhambra bracelet increased from 36,700 RMB ($5,068) to 40,800 RMB ($5,634), while the 18K rose gold model with diamond and mother-of-pearl jumped to 123,000 RMB ($17,003) up from 111,000 RMB ($15,344) – 11% increases on both.

These price increases are not expected to be limited to China. In Japan, prices are rumored to have risen by about 7.5% yesterday, with the Alhambra bracelet seeing increases of 14% to 15.5%. Updates for the South Korean and US markets are pending.

Van Cleef & Arpels has not officially commented on the price hikes, but in China, the rumors earlier in May drove value-minded consumers to stores. One customer reportedly purchased dozens of pieces in a single morning at one Beijing boutique.

In Japan, where Chinese travelers continue to take advantage of a weak yen, Van Cleef & Arpels stores are among the hottest destinations for Chinese shoppers. Chinese news media report that it has become exceedingly difficult for Chinese tourists to secure appointments at Van Cleef & Arpels stores in Japan, with reservations filling up within minutes of opening.

Ahead of its price hike, Van Cleef & Arpels managed to achieve something rare in the Chinese luxury market in 2024: getting consumers to line up at its Beijing and Shanghai flagship stores.

As Jacques Roizen, Managing Director, China at Digital Luxury Group (DLG), puts it, “My belief is that [Van Cleef & Arpels belongs] to a very small exclusive club that includes Hermès, Chanel, and Louis Vuitton – true luxury powerhouses. Because in their case, they have reached a scale that is far beyond the second segment, which I consider to be the scarcity brands, such as Patek Philippe, Vacheron Constantin, Loro Piano and Brunello Cucinelli, among others.”